FOUNTAIN INTERNATIONAL SCHOOL ECONOMICS 4TH QUARTERLY EXAM NAME:________________________________________ SECTION: _____________________________________ PARENT'S SIGNATURE: ___________________________

DATE: __________ SCORE: ________

If it is not right do not do it; if it is not true, do not say it. -Marcus Aurelius

I. Read each sentence carefully then choose the correct answer from the choices given. Write the letter of the correct answer on the blank provided. Capital letters only. No erasures. ______ 1. Which of the following is a central issue in macroeconomics? a. the deregulation of the banking industry b. inflation of prescription drug prices c. the effect of excise taxes on consumers' buying patterns d. none of the above ______ 2. Fiscal policy attempts to achieve all of the following objectives except _________. a. full employment b. a stable money supply c. economic growth d. price level stability ______ 3. Which of the following is a source of economic growth? a. growth in the stock of knowledge b. growth in capital inputs c. improved technological efficiency d. all of the above ______ 4. The business cycle _______________________. a. is the fluctuation around GDP b. can be accurately predicted c. follows the phases of the moon d. is periodic but irregular ______ 5. Fiscal policy does not include ______________________. a. an increase in government purchases of goods and services b. a cut in income tax rates c. the building new highways d. a cut in the interest rate ______ 6. Intermediate goods and services ____________________________. a. are used to produce final goods and services b. are double counted in GDP c. include used goods d. are included in GDP ______ 7. Gross Domestic Product is equal to the sum of consumption expenditure, investment, government purchases and ___________________. a. net exports b. saving c. net taxes d. profits ______ 8. Government purchases include ______________________. a. roads, bridges, and education b. net exports c. consumption expenditure d. social security and education ______ 9. When _______ is greater than _______, saving increases _______. a. income; consumption expenditure; wealth b. income; government purchases; wealth c. consumption expenditure; government purchases; wealth d. income; consumption expenditure; investment ______ 10. Which of the following items are counted in GDP? A taxi company's ________________________. a. sale of some bonds to finance its purchases b. purchase of new trip meters for its cabs c. sale of 5 old cabs d. purchase of 5 new cabs

______ 11. Using the information in the table, calculate the value of aggregate expenditure in 1996.

a. 120 million c. 145 million

b. 100 million d. 110 million

______ 12. Use the information in the table to calculate the value of net exports in 1996.

a. 5 million b. 0 c. 15 million d. 5 million ______ 13. The table gives a simplified process by which wheat is transformed into a donut. What is the value added by the miller?

a. 0.15 b. 0.35 c. 0.65 d. 0.40 ______ 14. Which of the following is an important factor in achieving high living standards in a country? a. a high savings rate b. policies to encourage industries to compete in world markets c. low population growth d. all of the above ______ 15. Which of the following is NOT true? a. Small countries depend more on trade than large countries. b. U.S. imports exceed U.S. exports. c. Economists believe that international trade is beneficial for all countries involved in it, in most cases. d. Imports cannot exceed exports for an extended period of time ______ 16. Farmer John has a pistachio farm. It takes him 5 hours worth of work to harvest 1 pound of nuts. Farmer Rick also has a pistachio farm. It takes him 10 hours worth of work to harvest 1 pound of nuts. Finally, Farmer Erica owns a third pistachio farm. She can harvest 1 pound of nuts in 2 hours. Who has the absolute advantage in this example? a. Farmer Erica b. Farmer Rick c. Farmer John d. Unclear ______ 17. Why should countries trade? a. To help them thrive b. To increase output c. To decrease output d. To keep them busy

______ 18. Which of the following is a situation in which trade is advantageous? a. Two countries produce the same goods for the same costs b. Two countries are isolated c. Two countries produce different goods for different costs d. Two countries have the same markets ______ 19. An increase in currency held by households and firms is ________________. a. currency drain b. income c. a currency surplus d. wealth ______ 20. ______________that we buy from people in other countries and _____________ that we sell to people in other countries. a. Imports are the goods and services; exports are the goods and services b. Exports are the goods; imports are the goods c. Exports are the goods and services; imports are the goods and services d. Imports are the goods; exports are the goods ______ 21. A tariff is a tax that is imposed by the _______ country when an _______ good crosses its international boundary. a. importing; exported b. importing; imported c. exporting; exported d. exporting; imported ______ 22. A tariff _______ the quantity of the good imported and _______ the domestic price of the imported good. a. decreases; increases b. decreases; decreases c. increases; greatly increases d. does not change; increases ______ 23. The figure shows the international market for candles in a far-off galaxy. There are only two countries in the galaxy. With free international trade, the price of a candle ______________.

a. 3 b.5 c. 10 d. depends on each country's demand for and supply of candles ______ 24. Which best describes why factories have been moved to Asian countries in the last 50 years a. low labor costs in developing countries b. workers are faster than American workers c. Asian countries have better materials to work with d. there are more people to work in factories ______ 25. Which term describes a business that has operations all over the world. a. trade bloc b. common market c. micro-enterprise d. multinational corporation ______ 26. Which of the following is one of the beneficiary programs instituted by the DAR? a. GMAP b. Swift Delivery of Agricultural Justification c. Government organized Consultation d. Pres. Diosdado Macapagal Agrarian Reform Scholarship Program

______ 27. Philippines is recognised as one of the world's leading producers of ____________________________. a. Gold b. Copper c. Chromite d. None of the above ______ 28. The following re budget appropriations except: a. Social Services b. Economic Services c. General Public Administration or Services d. Tourism ______ 29. The credit instrument used in paying International debts. a. Exchange Rate b. Currency c. Foreign Exchange d. Tariffs ______ 30. Which government agency is mandated to provide adequate and sufficient facilities for the efficient transport and distribution of fish harvest? a. Philippine Fisheries Development Authority b. Philippine Fisheries Commerce Department c. Domestic Aqua-technology Facilitation Association d. Department of Fishery ______ 31. This happens when the economy is operation way below full employment wherein the government can initiate projects such as constructions. a. Pump-Printing b. Short-run Compensatory Spending c. Long-run Compensatory Spending d. Government Revenue ______ 32. This is one of the fastest expanding industries in the world. a. Telecommunication b. Transportation c. Retail Trade d. Private Services ______ 33. What are examples of agricultural products? a. timber, rice, vegetables, and fish b. rice, vegetables, meat, fish and fruits c. copra, sugar, tobacco, bananas, timber, and prawns ______ 34. Which of the following is considered a major source of comparative advantage. a. Climate and Location b. Institutional and Cultural Factors c. Relative Resource Abundance d. Government Policies ______ 35. It is the policy of selling government-owned and controlled corporations to the private sector. a. privatization b. communication c. facilitation d. globalization

II. Find the synonym, definition or similar word or phrase for each underlined term and enter it into the box. factors of production balance of payments economies of scale division of labor climate quotas nations tariffs balance of trade commodities protectionism barter/counter-trade

___________________ 1. Countries import goods and services from abroad and export others to the rest of the world. ___________________ 2. Trade in raw materials and goods is called visible trade in the UK and merchandise trade in the USA. ___________________ 3. The difference between total earnings from merchandise trade and total expenditures from merchandise trade. ___________________ 4. The difference between total earnings from all exports and total expenditures on all imports. ___________________ 5. The direct exchange of goods without the use of money. ___________________ 6. The favoring of domestic industry against foreign industry. ___________________ 7. Some countries had certain advantages because their inputs(costs of labor, raw materials, capital, etc.) may be less expensive. ___________________ 8. The weather in some countries may give them an advantage in agriculture and commodities. ___________________ 9. The specialization of labor into more efficient sub-units. ___________________ 10. High volume production can often create savings in unit costs arising from large-scale production.

III. Choose from Column B the definition of the word in Column A. COLUMN A Agriculture Privatization COLUMN B a. is the exchange of domestic goods within the boundaries of a country. b. an economic theory that holds that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices. c. government sector for government housekeeping d. is a corporation enterprise that manages production or delivers services in more than one country e. the cultivation of animals, plants, and other life forms for food and other products used to sustain life. f. a system that was employed by the Spanish crown to regulate labor. g. the incidence or process of transferring ownership of a business, enterprise, agency, public service or property from the public sector to the private sector. h. calculates what government revenues, expenditure and deficit would be if the economy were operating at potential output. i. asserts that regulation is often tailored to serve the interests of regulated industries instead of those of the general public. j. refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor.

_______ 1. _______ 2.

_______ 3. _______ 4. _______ 5. _______ 6. _______ 7.

Domestic Trade Livestock Public Interest Theory Multinational Corporation Encomienda

_______ 8.

Industry Interest Theory

_______ 9.

Structural Budget

_______ 10.

General Public Administration Sector